I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday 8 September 2019

Investing FOMO And Its Real Cost


Alamak!

To every retail investor; theory and practical and reality on ground is so much difference.


How scary is the real cost and risk of cash to catch the next big Bear?

Once we track our investment portfolio and its cash flow generation; we will roughly know its real cost and risk of cash.

Personal Actual
















Theory











































2 comments:

  1. Hi Uncle8888,

    The term FOMO seems to be misused in this article, or just having a strange meaning. I would think the more appropriate term is simply "Fear Of Losing Money".

    The theory presented is simplistic .... but then this article is meant for beginners. It's kinda ok ... provided got 30 years (as indicated in the chart example) or "multi-decade horizons" as in the Buffett quote used ... and you are a psychopath with no heart or feelings.

    The shortcoming of the article is that:-

    (1) it completely disregards human emotions in terms of handling -20% to -25% common corrections, not to mention -40% to -60% bear markets;

    (2) and that stock market returns are lumpy --- totally not like the nice "rocket-launch" exponential graph shown i.e. sequence of returns unpredictability.

    But it's also good as this article shows that stock investing is still not back in the mainstream yet in S'pore (and probably in ASEAN too). Sentiments are definitely not like in 1996 or 1999 or 2007.

    Whether & how much to invest also depends on risk tolerance (90% of people won't have), objectives, lifestyle required, level of income stream desired, safety of profession, job security, number of dependents, severity of dependents, timeline available, etc.

    Many people can meet long-term objectives without investing --- it just requires certain tradeoffs.

    A lot also discovered they can achieve comfortable retirement with just investing 20%-30% of their savings. Middle-class and upper middle-class are usually the ones. Again trade offs required.

    ReplyDelete
    Replies
    1. May be FOMO is Read bite on hardcopy reading. Click bite on Internet. LOL!

      Delete

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